Foreclosure Options for Lawrence

October 23rd, 2007

Other Massachusetts communities and Lawrence have been haunted for too much time now with regard to several foreclosures in the real estate industry. These home foreclosures have brought considerable difficulties to its residents over a period, with tensions and apprehensions mounting among the people.Keeping these factors in mind, Governor Deval Patrick propelled a series of initiatives to bring relief to those whose lives have been turned upside down because of foreclosures in the real estate segment.

For the plan, it has been decided that the site of a pilot program would start at Lawrence. This way, it would be an effective way to establish a dialogue with lenders and encourage these lenders to make the homes available for purchase in real estate segment. After all, this would be a blessing of sorts for most of the enthusiastic and anxious first-time buyers or local community development agencies. This would also be a more preferred and profitable option in comparison with the foreclosures process through public auction.

The full details of the new series of initiatives would be declared and explained without further delay. The fact that this program is part of a five-part plan is not known by every one. The purpose of this is mostly to bring about some stabilizing factors for those sensitive neighborhoods where the number of homes that are undergoing the process of foreclosures is mounting steadily. This point was specifically reiterated by the state undersecretary for Housing and Community Development.

While it would not be realistic to put an end to all foreclosures happening in Lawrence, a great number of families would still be saved from losing their homes. This is a stabilizing aspect.

The advantage of the proposed pilot program is that it persuades most lenders to agree for a short sale, rather than initiate foreclosures process. In a short sale, the lender accepts from the homeowner a sum that is less than the full mortgage balance due. This is mostly a cost based on the home’s assessed value of a home. Short sales are a great way to extend valuable help to homeowners who are in a state of extreme financial difficulty.

It would be noteworthy to mention in this context that Lawrence foreclosures doubled up 165 percent. This estimate is for the year that ends on July 31, according to ForeclosuresMass.com. Meanwhile in Essex County, the foreclosures increased 90 percent. This constitutes an increase of 76 percent. The figures simply go on…up, up and up.